REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

RESOLUTION

NO. : 2006-001
DATE : January 31, 2006

SUBJECT: RESPONSIBILITY TO ISSUE NOTICES OF SUSPENSION,

DISALLOWANCE OR CHARGE ARISING FROM THE
SETTLEMENT
OF
ACCOUNTS
AND
AUDIT
OF
TRANSACTIONS.

WHEREAS, under COA Resolution No. 2002-005, this Commission has simplified
and restructured COAs organization to focus on its core functions of accounting,
auditing and settlement of accounts;
WHEREAS, pursuant to the organizational restructuring, the responsibility for the
issuance of notices of suspension, disallowance or charge in the audit of settlement of
accounts exercised by auditors in the audit sector was transferred to the Legal and
Adjudication Office (LAO);
WHEREAS, the transfer was effected to delineate the separation of the auditing
function from the adjudication and fraud investigation functions, and to focus the time
and resources of the audit sectors in the conduct of, and strengthening their capabilities
in, financial audit;
WHEREAS, nearly three years after the organizational restructuring intended to
streamline the audit performance of COA, there is a remarkable improvement in the
financial audit capabilities of auditors brought about by the refocusing of resources and
continuing audit capability building interventions provided;
WHEREFORE, the
foregoing
premises
considered,
this
Commission RESOLVES, as it isHEREBY RESOLVED, to restore to the audit sectors
the responsibility for the issuance of notices of suspension, disallowance or charge
arising in the course of the settlement of accounts and their review of transactions
covered by their audit programs. The Offices under the Legal and Adjudication Sector
shall be responsible for the issuance of such notices in case of audits conducted by its
teams. Such responsibility shall be exercised in the manner prescribed under
Presidential Decree No. 1445, pertinent laws, rules and regulations to be promulgated
by this Commission.

This Resolution shall take effect immediately after its publication in two (2)
newspapers of general circulation.
Quezon City, January 31, 2006.